ECO 550 (Latest ) WK 9 Assignment – Dealing with Risk, Asymmetric Information, and Incentives
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Earlier in the quarter we discussed Southwest Airlines’ use of game theory to create new strategy. Continue to research Southwest Airlines or a company of your choice and write a six to eight (6–8) page paper in which you:
- Evaluate a company’s recent (within the last year) actions dealing with risk and uncertainty. Offer advice for improving risk management.
- Examine an adverse selection problem your company is facing and recommend how it should minimize its negative impact on transactions.
- Determine the ways your company is dealing with the moral hazard problem and suggest best practices used in the industry to deal with it.
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